Franco-Nevada closes strategic investment in Skeena

On December 23, 2021, Franco-Nevada Corporation (“Franco-Nevada”) closed a previously announced strategic investment in Skeena Resources Limited (“Skeena”).

As announced December 13, 2021, Skeena sold 1,471,739 flow-through common shares at a price of C$21.00 per share for collected gross proceeds of C$30.9 million. Franco-Nevada was the end purchaser of the shares issued in connection with the offering.

Gross proceeds from the offering will be used to incur Canadian exploration expenses. All the securities issued under the offering will be subject to a hold period of four months and one day from the closing date.

Concurrent with the closing of the offering, Skeena granted Franco-Nevada a right of first refusal over the sale of a 0.5% net smelter return (NSR) royalty over the Eskay Creek gold-silver project (“Eskay Creek”), matching the portion of the existing Barrick royalty that can be bought back by Skeena. In addition, Skeena and Franco-Nevada entered into an amendment to the terms of their existing royalty agreement such that it will cover the same tenures as are covered in the existing Barrick royalty agreement.

Further information can be found on Accesswire’s website.

Skeena is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada.

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation.